I have recently completed a series of investigations as a #CFE (Certified Fraud Examiner), to compile reports on the possibility of bringing Civil Fraud cases against a number of people who have preyed (forgive the pun) amongst those in Churches, Temples, and Synagogues who have a generous and trusting nature.
Why is it that such frauds are not so well known or reported ?
2 immediate reasons spring to mind: Shame and Embarrassment.
Surely it is better to sweep such matters under the proverbial carpet? No shame to those who have been duped; No embarrassment to those who have scammed.
In each case in which each of these religions have been plagued, there is one common denominator:
A man, (usually white, and in his mid to late 30s), down on his luck, approaches a Religious Community. He tells a tale of woe:
“I am a man who has sinned. I am a convicted fraudster. I have lost my home, my job, my family…and now I want to start again. I seek Sanctuary. I seek forgiveness. I seek retribution”.
He is to be distinguished from the Pardoner, in Chaucer’s Pardoner’s Prologue, and Tale, who preaches ‘Radix Malorum est Cupiditas’, that money is the root of all evil. He scoffs and gloats that he is guilty of the same thing and then has the chutzpah/cheek to offer to help people in exchange for more money. His fellow travellers on their Pilgrimage to Canterbury are not taken in by the Pardoner.
Our current Religious Leaders were taken in.
Why is this ?
Apparent honesty in a world of deception is charmingly disarming.
Let us analyse the facts as we have them:
1. A Man confesses his sins;
2. He has lost everything; His house, his family, his career;
3. He seeks the mercy of a religious house;
4. He seeks divine retribution;
5. He seeks salvation.
He appears sincere. He appears to be telling the truth. A quick google search shows that he has been wanted in connection with a fraud of some kind but the papers are sketchy. Nothing is clear.
Everyone sees a pattern of fraud, but does not see the underlying focus of attack being the religious community itself.
The religious leaders are sceptical…suspicious. How can we trust such a fellow? Does a leopard ever change it’s spots?
Ah, but we are a Religious Order who believes in mercy and forgiveness. Here is a man who confesses all, but what does he want ?
“I want nothing from you, or from anyone. I just want to do good”
…and so it begins..
He starts by going to religious services. It turns out he has a good voice, and he can sing. He joins the choir and soon he is being embraced by the wider community. He volunteers for everything: He puts out chairs, cleans away, puts out food, and then one day he is asked if he would like to collect money from the wider community. He says, sure.
This is a test of course. Will he take any money ? Will he skim from what he collects ?
But our fraudster has his eye on bigger goals.
He collects with all sincerity and honesty, to the very penny; Nothing is unaccounted for.
The community find him endearing, he is personable. He is a staunch member of the community.
He gains their trust. One or 2 senior members suggest that he becomes a Freemason, (being a symbol of honour and integrity), and perhaps he should stand for the Board to take a more senior role ?
He declines with apparent modesty, but the Community are aware of his background and he has fought so hard to gain their respect.
Soon he is involved in the Finance Committee advising the Financial Board, and only now his plan unfolds.
He is involved in a number of start-up Companies and has a fantastic array of business plans, but is short of cash.
So people start to lend him £1,000 here and there on the promise of a 20% return within weeks. He remains true to his word, and repays with 20%. Again this is not his ultimate aim.
His aim is to be accepted as trustworthy. His objective, however, is to go for larger amounts.
So the figures keep building up to £5,000, £10,000 with a 20% return some weeks later, and true to form he pays the amounts.
Now he has access to the big financial players within the respective Religious Community, but the picture he wishes to paint is not complete.
No. Firstly he must also be seen to be a generous philanthropist, giving of his time, and lending and giving charitable amounts publicly, or better still in a tailored well-publicised hush.
And now, his deception is complete. He appears to be the epitome of a bad man turned good; Unquestioned and unconditionally a ‘good egg’.
The sums to invest are now considerable, but wait…everyone has a vice: Everyone. There is some funny money to be made on the side, if you want to participate in money laundering, drugs, alcohol, or perhaps gambling, or a share in a brothel…or a prostitute.
‘The path to hell is paved with good intentions’.
He seeks within the community those who are volatile either in unhappy marriages, or perhaps elderly, or lonely. He casts a line, and receives some takes, whilst at the same time he takes considerable sums with which to invest.
Now for the sting: he suddenly cannot repay, but reminds them that they have done wrong, and if he goes down then so do they.
No one dares prosecute. The shame and embarrassment to themselves, their families and the wider community. Better to cover up such a scandal, but this man travels the world far and wide, preying on the weakness of a community showing a sinner mercy.
No one reports the matter. Better to keep things quiet and sweep them under the carpet…
Has this happened to your Community, whatever your religion? Get in touch, I may be able to assist.
David Rosen is a Solicitor-Advocate, Partner and head of litigation at Darlingtons, London, EC4. He is a working member of the Fraud Advisory Panel, and a Certified Fraud Examiner of the Association of Certified Fraud Examiners.